Raipur: For the first
time in the country, Chhattisgarh government is all set to auction the state's
only known gold mine, Baghmara, for mining operations much on the lines of coal
block auctions.

However, the mining
department, which would conduct the auction, has not made an assessment as to
how much money would be generated with this auction as the process to evaluate
the exact quantity of the gold reserve is yet to be finished.

Tenders for the auction
are all set to be floated next month and the company selected for the purpose
would be issued licenses both for prospecting and mining of gold.

Confirming the move,
Secretary (Mining) Subodh Kumar Singh said that composite license, which
includes both prospecting and mining licenses, would be issued to the selected
company. He said KPMG has been appointed as a consultant advisor to the
project.

Singh said the mining
department would carry out a detailed exploration, using the state of the art
techniques, to assess the exact quantity of the reserve. As per plan, he said,
the tendering process and allotment of licences should be completed by February
2016.

According to mining
officials, earlier surveys carried out by the department in 1980 and 2003,
indicate that the gold reserve is spread across 6.1 kilometers in Baghmara
village of Lone Block in Sonakhan in district Balodabazar. They said the only
gold block in the state has been demarcated in some 610-hectare area covered by
thick forest.

Officials said the
company, which gets the licence, would initially carry out exploration of mine
and then get on with the excavation. They said earlier explorations done by the
state agencies indicate gold layers about 650 meters below the surface. Though
the estimated quantity of the gold under the ground is about 1,800 kilograms,
officials claim that it could be even more. (With inputs from agencies)